Middlefield Man Pleads Guilty To Defrauding State: Feds

MIDDLEFIELD, CT — A Middlefield man has pleaded guilty to charges that he ran a massive fraud scheme through a state jobs program, according to a statement from Leonard C Boyle, Acting United States Attorney for the District of Connecticut. David Kania, 62, pleaded guilty to one count of wire fraud and one count of filing a false tax return.

He faces up to 23 years in prison.

According to prosecutors, Kania was the owner and operator of three small businesses in the dietary supplement and beverage industry.

Between2013 and 2018, Kania's businesses applied for and received state subsidies for employing unemployed jobseekers, including veterans, and for providing training to employees.

"In order to receive funds," prosecutors' statement reads, "Kania submitted false documents to the Connecticut Department of Labor and the Workforce Investment Boards, which administers wage subsidy programs, showing that he had hired certain workers and they worked for his businesses for a certain period of time, when he knew that to be false.

"Kania also submitted false invoices to the Manufacturing Innovation Fund ('MIF') Program for training that was never done."

Kania caused $941,723.24 in losses to the wage subsidy programs and $115,000 in losses to the MIF Program, according to prosecutors.

Kania also underreported his total income on his 2014 through 2018 federal tax returns by failing to account for $299,201.50 in business funds that he used for personal expenses.

Kania is released on a $100,000 bond pending sentencing.